News Release

U.S. Department of Labor For Immediate Release:

Office of Public Affairs June 3, 2002
Chicago, Ill. Contact: Gloria Della
V-232 (202) 693-8666
1
Illinois Corporation Makes Restitution
To Employee Benefit Plan
CHICAGO—Chicago-based IGA, Inc. has been ordered to pay $50,000 to its employee benefit program
as restitution for improperly receiving certain administrative fees and commissions on the sale of
insurance policies sold to the program, according to a consent order and judgment obtained by the U. S.
Department of Labor on May 31. IGA also is barred from receiving administrative fees from the program
in the future.

“This action reaffirms our commitment to protection of the hard-earned benefits promised by employers,”
said Kenneth M. Bazar, Director of the Chicago regional office of the Pension and Welfare Benefits
Administration (PWBA).

A suit filed simultaneously with the judgment alleges that IGA violated the Employee Retirement Income
Security Act (ERISA) when the company received administrative fees in excess of direct expenses, and its
wholly owned subsidiary, Grocers Insurance Agency, received commissions from the sale of insurance
policies to the program. The suit alleges that the program's trustees, several of whom held positions as
directors of IGA, approved the fee and commission arrangements.

IGA, Inc. is an alliance of independent retail grocers operating throughout the United States. The IGA
program provides group life insurance, medical, dental, vision and short-term disability benefits for 7,139
participants and had $2,224,180 in assets as of Dec. 31, 1997.

This suit, filed on May 29, 2002 in federal district court in Chicago, Ill., resulted from an investigation by
the Chicago regional office of PWBA into alleged violations of ERISA. Employers and workers can
contact the regional office at (312) 353-0900 or PWBA’s toll free number, 1-866-275-7922, for help with
problems relating to private-sector pension and health plans.

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(Chao v. IGA, Inc.)

Civil Action No. 02-C-3792

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